WIC Formula Rebate Program

The document that explains the WIC Formula Rebate Program is a 3 page introduction of the economics of WIC. Here you will find:

• Each State is under a separate contract. As you know Missouri WIC agencies are contracted to provide one product, and Kansas WIC agencies another product.
  
• Exempt formula (Metabolic formula or formula for  those who had a low birth weight) are not under contract.
  
• Documentation (a WIC form) must be provided by families to obtain a non contract formula.
  
• The bidder (Abbott, Mead Johnson, Nestle) specify a rebate they will provide to WIC state agencies for each can of product the agency issues. For example, the bid for the rebate might be 85% of the whole sale price is paid to the agency. 

It is only a 3 page document. Take a look. 

The Economic Research Service published a report on Rising Infant Formula Costs to the WIC Program: Recent Trends in Rebates and Wholesale Prices.  in early 2010. Here you will find

• 57-68% of all infant formula sold in the US was purchased through WIC. 
  
• The addition of DHA and ARA to infant formula was responsible for 72% of the increase in the price of infant formula in 2008.

This report is only 2 pages- take a look. The complete report can be found here.


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